Vice President Xi Jinping, slated to become China’s next supremo, arrives at the White House tomorrow. We have been told that the Obama administration will not “sacrifice the important issues for the sake of having a comfortable visit,” yet there is a sense of pessimism in Washington about America’s ability to persuade China to move in the right direction. It seems that everyone here believes that Beijing owns the century and controls our destiny.

The truth, however, is that we have the ability to get China to do what we want. Why? Because at the moment the Chinese economy is faltering — most indicators are pointing to low single-digit growth and “hot money” is gushing out of the country — and Washington holds the key to rescuing it.

China at the moment is in trouble because, among other things, export growth, once the engine of its economic “miracle,” has been on a long downward trend. Last month, exports fell 0.5% on a year-to-year basis and 14.2% month-on-month, a performance well below consensus estimates. That’s a problem for Beijing because it is dependent on sales abroad to keep Chinese factories humming and workers employed, and the American market is extraordinarily important to them.

The general narrative is that, when the global downturn hit in 2008, Chinese exporters started selling more to other markets and became less reliant on tapped-out American consumers. The facts tell the opposite story, however. In 2008, 90.1% of China’s overall trade surplus related to sales to the United States. That already staggering figure increased to 115.7% in 2009, and 149.2% in 2010.

And last year? Last year, the figure was a simply unbelievable 190.5%. In 2011, China’s trade surplus against the United States hit $295.5 billion, easily surpassing the 2010 record of $273.1 billion.

14 Comments, 9 Threads

1.
K.T.

We have the leverage over China. They only issue is whether we have the political will to use it.

That seems like a key question which in reality isn’t the problem. The ‘problem’ is: does Obama or any of his advisors have the political savvy to know when they’re holding a winning hand? Time and again they’ve shown no aptitude for recognizing a royal flush – unless its held against a political rival. In reality they seem to view the Chinese and Russians as political kinfolk.

They’ve shown they aren’t to be trusted to make the right choices when it comes to Russia – look at how they hung Eastern Europe out to dry with their indecision locating missiles there – Russia objected and Obama recanted. They’ve all but served up Canadian oil contracts and US jobs on a silver platter to the Chinese with the rejection of the XL Pipeline.

This administration certainly does not lack “the will” to do anything they perceive of as significant to the achievement of their primary goals. So “lack of will” is not an issue. I think that he will be quite happy to let China do exactly what they want to do in terms of pushing for greater commercial/financial dominance over the present and “future” of these United States…and then he will blame bush.

Lack of will is never an issue for him. The problem with obama is that he does not like the United States. He does not like our Constitution. He is not defending our Constitution. He does not care a whit about our security or stability. Lack of will? Good grief. We should be so blessed that that was really the problem where he’s concerned.

It’s not ALL Obama; It’s the Democrat/Socialist Machine, of which Obama is only the coin slot.
After they sell all the American souls to the highest bidder, decimate the American economy and military, where do they expect to take sanctuary?
Obama’s got Kenya and/or Indonesia. What do the others have?
The entrails of the Congressional and military leaders will be hoisted up a flag pole to celebrate victory over the Great Satan.

“As a result, Chinese factory owners began to flee because they could not pay their debts, some of them even committed suicide, and worker protests flared. This year, it appears, the drought of European orders to China will last the entire year. It’s possible, therefore, that sales to the U.S. will account for an even larger share of China’s total.”

Europe’s economy is going to be in the toilet for at least two years. They are in a major recession and with their high unemployment demand is going to be low, certainly not what it was a few years ago. We are going to be the only game in town and the Chinese should know it. I am sick and tired of American presidents being intimidated by these Chinese thugs. You can dress them up in dark suits, but they are still Chinese thugs. This is one of the few things I agree with Donald Trump on. The Chinese keep eating our lunch and there is no good reason for it. It’s about time we start throwing our substantial weight around and get what WE want. And if they threaten us by not loaning us any more money, well, we can always threaten them by NOT paying them back what we owe them. Major loans work both ways, and I’d like to see what an American default on Chinese loans would have on China’s fragile economy. We only need a president with some stones to tell the Chinese that financial relationships work both ways and not only one way. And that one way doesn’t only go to China.

A real thug (if there is such a thing) doesn’t worry about having his loans repaid. First, its never that much money anyway, and second he can send out Guido for a pound of flesh and an example for the next deadbeat.

I don’t think China’s plan. I think they believe America will become lazy and complacent and allow Asian interests to take more industries and IP. The easterly transfer of wealth is big now but just wait. They, plus India, could consume us. There’s that many of them.

I hope they underestimate us but with the leadership we have today I’d say China’s odds are pretty good. Some of these candidates need to weigh in on this, too.

“The truth, however, is that we have the ability to get China to do what we want.”
Ability and action are two different things entirely. Many people have the ability (talent) to be music (rock, country, pop) stars but don’t have the will, heart, or persistence to pursue it to the top. Others have the ability to be great inventors, writers, actors, you name it, but are perhaps wired with a fear of success. And yet others ARE wired to achieve greatness.

I wholeheartedly agree the U.S. has the ability to get China to do what we want, but with Obama at the helm, we won’t go anywhere near there; he’s wired to push mediocrity and equality of misery onto the U.S. A more likely scenario is that China will get Obama to do what it wants. Obama dreams of ruling (see Valerie Jarrett – Obama “ready to rule from day 1″) a nation like China, where everyone hangs on his every word, must bow to him and obey his every command.

China loves capitalism as only a Marxist can love an economic system. Money is important to everyone, everywhere, but China is especially vulnerable to its interest in wealth. We certainly can and should use economic pressure on China to try to change its policies toward Iran and North Korea, the two most dangerous nations on earth.

Looks like, yet again, Obama rolled over for the Chicoms. Let’s see what else would they like? Hmmm, Oh! I know I’ll reduce our nuclear arsenal by 80%. That ought to hold them off a for a couple of months. Obama is a spineless Pimp Daddy who is thowing us all overboard to save his own hide. He’s gotta go.